Delaware Liberal

Unions scapegoated as vulture capital firm liquidates Hostess

We all see what is happening, right? Hostess management claims that greedy striking workers are responsible for plant closings, and the lap dog press reports it even though the Wall Street owners of Hostess already planned to close plants even if the workers accepted the cuts and stayed at work.

Baker’s Union President Frank Hurt says the workers knew the score all along:

Our members know that the plans all along of the Wall Street investors currently in control of this company did not include the operation of Hostess Brands any longer than it takes to sell the company in whole—or in part—in a way that will maximize the profits of these vulture capitalists regardless of the impact on the workforce.

As reported nowhere, except Daily Kos (and maybe ‘Democracy Now!’) – “Workers were being asked to accept cuts, but top executives had gotten massive raises as Hostess was about to enter bankruptcy. Investments in the company’s future that had been promised as part of restructuring after the previous bankruptcy were never made. And as for the management, put in place by the private equity companies that now own Hostess, Hurt says:”

Unfortunately however, for the past eight years management of the company has been in the hands of Wall Street investors, “restructuring experts”, third-tier managers from other non-baking food companies and currently a “liquidation specialist”. Six CEO’s in eight years, none of whom with any bread and cake baking industry experience, was the prescription for failure.

Maybe having just defeated one of the “job creators” in an election, the public will be clued into how these “investors” operate. I’m not holding my breath waiting for the real story to be reported in the main stream media though.

Exit mobile version